News

RAC bosses ready to drive off with £200m

The £2bn RAC is tipped to list next month in a test of investors’ hunger for new issues

A CLUTCH of senior RAC staff are eyeing a bonanza of about £200m from the
forthcoming float of the breakdown recovery service.

The £2bn RAC is tipped to list next month in a test of investors’ hunger for
new issues after the summer lull.

The deal would represent a coup for the private equity giant Carlyle, which
bought the service from the insurance giant Aviva in a cut-price £1bn
takeover three years ago.

It would also enrich top managers, who were handed 15% of the RAC by Carlyle.
The chief executive Chris Woodhouse, who joined only two years ago, is set
for a paper windfall of more than £40m, with the chairman Rob Templeman in
line for £25m.

Earlier this year Carlyle hired the investment advisers Lazard, Goldman Sachs
and Barclays to offload the RAC. It is thought to favour a float, although
it has also sounded out rival private